RABCPA PC Blog
Pendente lite is a fancy term that describes the support that is paid when a divorce is ongoing. It is usually paid by the moneyed spouse to the non-moneyed spouse so that they can pay their bills and maintain their lifestyle.
The interesting thing about pendente lite is that after a divorce is final the pendente lite becomes alimony.
You may want to be very careful when negotiating pendente lite because in many cases the courts will look at the same guideline in order to calculate alimony. The one thing you may want to make sure of, is that if there is pendente lite paid that it is very clear that it is non-allocated and nontaxable. Either one of these should ensure that the pendente lite is nontaxable. Posted June 25, 2018 by Robert A Bonavito in Matrimonial & Divorce
Inequality has been in the news for the last 3000 years. I know recently it seems like you can’t pick up a paper or turn on the radio without hearing something about inequality. Especially since Piketty wrote a book called Capital, in which he blamed the ability of the wealthy to earn superior returns on their investments compared to what the average man can earn on his wages. The real problem and real cause of inequality is not federal taxes, state taxes or the lack of good jobs, it is payroll taxes.
If you take the average person and say they start working age 15 at the local supermarket or fast food restaurant, and retired at age 67, during that time they worked for 52 years and let’s say their average income over those 52 years was $75,000. Payroll taxes that they would have contributed are about 20% per paycheck which is composed mainly of Social Security, Medicare, Unemployment, Family Leave Act and other plans that provide little if any benefit to the average citizen, and in many cases cost more to administer than any benefits they pay out. The interesting thing is that these payroll taxes were taxed again by the federal and state government. Yes, payroll taxes that you do not receive are taxed.
When they retire at age 67 the government gives them $500,000 paid out over 15 or 20 years, but they tax this again, so the net present value of that is about $300,000. Now if the government rather than taking this money and doing whatever they do with it, put it in a market rate low cost investment when this couple retire they would have $6.7 million in their account. The difference between the $300,000 and the $6,700,000 is a big cause of inequality.
Posted June 15, 2018 by Robert A Bonavito in Tax Services
Two ways of calculating damages are the Ex Post discounting and the Ex Ante discounting when calculating lost profits.
The Ex Post methodology looks back to an event after it occurred and decides what to do to clean it up. The Ex Ante methodology involves looking forward and asking what effect the decision will have in the future.
For example, let’s say I build a house, but by accident I build it 18 inches onto my neighbor’s property. What should we do about this? Posted June 6, 2018 by Robert A Bonavito in Business Damages
